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Saturday, November 28, 2009

Multi Nitrotama eyes on US$20 million loans

as published in Bisnis Indonesia daily newspaper
Saturday, 28/11/2009 00:00 WIB
Multi Nitrotama eyes on US$20 million loans

JAKARTA: PT Multi Nitrotama Kimia eyes on US$20 million loans from local bank to finance the new plant of ammonium nitride construction and old plant capacity rise.

“The company has sought loan from local bank as standby loan if the corporate bond issuance fails to meet the set target,” said Finance and Administration Director of Multi Nitrotama Aulia M. Oemar to press this week.

The company has been establish pricing and book building of bonds and sharia bonds worth totally at IDR370 billion with A- rating. Some 85 percent securities issuance funds will be spent for additional construction of ammonium nitride plant in Cikampek with 100,000 metric tons capacities.

The bonds will be categorized into three series, the A series with 2 years tenure, B series with 3 years tenure, and C series with 5 years tenure.

As underwriter, the company is assisted by PT Trimegah Securities Tbk and PT Indo Premier Securities. PT Bank Mega Tbk acts as trusteeship board.

Aulia said formerly the plant could produced 3,700 metric tons of ammonium nitride per year. The former plant capacity is either planned to increase up to 40,000 metric tons per year.

The company has constructed the plant a month ago.

The securities bond prospectus also explains the company has purchased secondhand machinery worth US$2.97 million for the new plant with refurbishment. The company also plans to buy new machinery from the fund.

The company targets to have IDR1trillion corporate sales this year

Next year, the company has planned to buy 18 hectares plot of areas close to Samarinda, East Kalimantan, to build warehouse for ammonium nitride whose development cost US$2-3 million.

Besides, the company also set the capital expenditure worth US$53 million to construct plant and warehouse next year deriving from the bond issuance and corporate internal cash.

The market shares of this industry is 50 percent and with the plant construction, the firm is optimistically to expand the profit as it could cut down the importation budget.

To cover the mining industry demand, the company should import ammonium nitride in addition to the 37,000 metric tons of production. (21)

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